Supply chain strategy and its impacts on product and market growth strategies: A case study of SMEs

In today's uncertain and complex business environment, supply chain strategy is playing an important role in the success of a firm's product and market growth strategy. In this paper, we present a framework depicting interactions between supply chain strategy and design, product design and development, and market strategy. Using the framework we undertake case studies of SMEs to better understand the importance of an integrated product-market-supply chain strategy. We empirically examine what decisions were made for market-entry and product innovations with regard to supply chain design, how they were implemented, and what the implications were for the firms' product success. It is revealed that SMEs do not typically consider their supply chain strategy before product introduction, and consequently experience supply chain problems that are likely to be detrimental to the firms' growth potentials. The results also support the theoretical proposition that proactive and pre-emptive involvement of suppliers and supply chain strategy would lead to a more robust strategic direction for growth, and contribute to extending the literature on the role and impact of supply chain and suppliers in product and market-entry innovations, with a focus on SMEs.